Cash Management
Cash is one of the most important assets of any business, yet so many companies
do not have a formalized cash management system. So many business owners concentrate
on earnings, an accounting concept, rather than cash flow. Companies don’t file
bankruptcy because they incurred an accounting loss; they bankrupt because they
did not have the cash to pay their obligations. An effectively administered cash
management system can be one of the most valuable tools available to management
to enhance profits and drive value in their organization. An effective and efficient
cash management program will consist of the following: